As we embark on a new year, today, we are thrilled to showcase some of our significant milestones from the past year. We have played a pivotal role in advocating for our industry, resulting in remarkable legal victories and substantial policy changes. These developments have laid a robust foundation for our industry as it enters the next phase of adoption.
Read on 👇
Creating Congressional Champions
Convos with Congress: In 2023, we facilitated over 240 industry meetings with Congressional offices, and the results are showing (as you will see below). We played a crucial role in blocking adverse bills and fostering influential, bipartisan legislation like the “FIT Act” and the “Deploying American Blockchains Act.”
Stop the Crypto Ban
The Need for Proof of Reserves
Fighting Crypto Fraud: We are committed to fostering the adoption of Proof of Reserves within the industry. The collapse of FTX in November 2022 spurred us to elevate our work in this area. Policymakers from across the nation have actively engaged with us, seeking regulatory solutions to safeguard the cryptocurrency industry from future fraud and abuse.
On June 9, 2023, the Governor of Texas signed H.B. 1666 into law, mandating Proof of Reserves for digital asset exchanges in the State of Texas.
On October 19, 2023, U.S. Senators Tillis (R-NC) and Hickenlooper (D-CO) introduced the bipartisan Proving Reserves of Others’ Funds Act, or the PROOF Act, in the Senate. The bill, currently pending, would enhance transparency at cryptocurrency exchanges far beyond the capabilities of conventional financial institutions.
We Launched the Digital Power Network
A New Advocacy Group: Representing over 50% of the U.S. Bitcoin hash rate, Digital Power Network is a strategic endeavor to advocate for Bitcoin and blockchain technology with energy and national security stakeholders.
Advancing Energy Security: We teamed up with U.S. Rep. Pete Sessions to introduce HR 238, promoting Bitcoin mining as a pivotal tool for advancing domestic energy security.
#1 Barrier to Corporate Adoption of Bitcoin
The historically complex accounting challenges surrounding digital assets have, as Michael Saylor aptly put it, been “the number one impediment to the corporate adoption of bitcoin.” In 2023, we broke through this barrier.
Treasury Triumph: After a long battle advocating for clear accounting rules, the Financial Accounting Standards Board approved a groundbreaking change, permitting businesses to record digital assets at fair market value. This rule change will empower businesses to utilize bitcoin for treasury management purposes.
The SEC’s “Forever War”
The ongoing battle for regulatory clarity in the digital asset sector, dubbed the SEC’s “forever war” by the Wall Street Journal, has prompted legal battles. This conflict drove many innovators and investors to relocate outside the United States, impacting the country’s leadership in advanced technologies.
Legal Win: In the landmark case SEC v Ripple, the District Court accepted all recommendations from our Amicus Brief, marking a substantial victory for the industry, which helped establish much-needed regulatory clarity.
Unlocking Institutional Adoption
Institutional investors will play an important role in the mainstream acceptance of digital assets. However, to pave the way for their participation, we must ensure the necessary infrastructure is firmly in place. For regulated financial institutions to engage with digital assets, it is imperative that they have access to institutional-level custody solutions.
SAB 121 is an unworkable custody requirement for digital assets, requiring custodians to hold an equal asset on the balance sheet as a liability, meaning for every $100 in bitcoin the custodian holds, it must also hold $100 in a similar asset.
Power: We urged Congress to rescind SAB 121, prompting the Government Accountability Office (GAO) to take action. The GAO found that SEC’s release of SAB 121 violated the Administrative Procedure Act, thereby making it subject to Congressional review. This year, we are focused on working with our partners on the Hill to nullify SAB 121.
The Historic ETF Approval
IT HAS BEEN APPROVED! For over a decade, the SEC has blocked spot bitcoin ETFs from the U.S. market. We investigated why the SEC appeared to hold Bitcoin to a different standard. The spot bitcoin ETF approvals are not just a win for The Chamber of Digital Commerce and our members, it is a victory for the entire digital asset community and all proponents of investment choice and regulatory fairness.
The Crypto Conundrum: We produced a report exploring the SEC’s unwillingness to approve spot bitcoin ETF applications and exposing the SEC’s arbitrary actions. Our report reached all 535 Members of Congress.
We didn’t stop at a report: In addition to joining an Amicus Brief in the matter of SEC v. Grayscale, we were actively involved in an awareness campaign on Capitol Hill. Our efforts generated sustained pressure on the SEC to approve spot bitcoin ETFs.
Here’s to 2024: The Cardinal Year for Crypto!
Take Action in 2024: Consider joining us at The Chamber of Digital Commerce in 2024 as we continue to grow as an organization and make a direct impact on crypto policy. You can also support our work by making a tax-deductible donation here.
Thank You for a Remarkable 2023! Your support made it possible, and we’re ready for even greater things in 2024.